Ringgit Rebounds On Softer Us Stance Towards China

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 The local note rises to 4.2335/4.2550 as Donald Trump adopts a less hawkish tone despite China’s ballooning trade deficit.
KUALA LUMPUR: The ringgit rebounded this morning, opening higher against the US dollar amid reports of a softer stance by US President Donald Trump towards China
At 8am, the ringgit rose to 4.2335/4.2550 against the greenback, compared to Wednesday’s close of 4.2400/4.2490.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the US Dollar Index (DXY) fell 0.23% to 98.392 points as Trump reportedly adopted a less hawkish stance towards China, despite the ballooning trade deficit with the world’s second-largest economy.
“At the same time, news is circulating on the possible termination of Federal Reserve chairman Jerome Powell by President Trump, which also seems to fuel positive sentiment in the market,” he added.
As such, Afzanizam said the ringgit could gain some traction today after weakening slightly by 0.07% to 4.2445 yesterday.
At the opening, the ringgit was traded lower against a basket of major currencies, except for the British pound.
It strengthened against the British pound to 5.6767/5.7055 from 5.6786/5.6907 at yesterday’s close. However, it slipped against the Japanese yen to 2.8603/2.8750 from 2.8508/2.8569, and fell versus the euro to 4.9257/4.9507 from 4.9248/4.9352 previously.
The local note was mostly higher against most Asean currencies.
It rose vis-a-vis the Singapore dollar to 3.2987/3.3159 from 3.2999/3.3071, appreciated against the Indonesian rupiah to 259.9/261.3 from 260.3/260.9 and edged up versus the Philippine peso to 7.41/7.46 from 7.43/7.45.
But it fell against the Thai baht to 13.0322/13.1076 from 13.0301/13.0630 at Wednesday’s close. - FMT

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